Question
The Coffee club at London University launched their coffee shop Thoughts few months ago. Thoughts have the following expenses: Rental $80 per day Coffee beans
The Coffee club at London University launched their coffee shop Thoughts few months ago. Thoughts have the following expenses:
Rental $80 per day
Coffee beans $5 per Coffee Cup
Sugar $0.3 per Coffee Cup
Flavors $ 0.5 per Coffee Cup
Filtered water $0.2 per Coffee Cup
Labor $30 per day
a-Calculate the fixed cost and the variable cost per day
b-If 30 students per day visit the coffee shop (each student buys one cup of coffee), how much the Manager should charge per Coffee Cup in order to breakeven?
c-After conducting a Market Survey, the Manager found out that he can charge up to $8 per Coffee Cup and decided to do so. How many students should visit Thoughts so it doesn't operate at a loss?
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